Some pundits seem to believe that improvements in how central banks operate mean that low inflation will continue forever. Kenneth Rogoff warns that slow productivity growth, high debt levels, pressure to reduce inequality through transfer payments, and unforeseen shocks may lead to higher inflation in the future.

The Fed fought the financial crisis and ensuing recession in part by pumping up bank reserves. When the economy recovers, this could generate high inflation if the Fed does not take steps to prevent it. Merle Hazard sings a humorous song about this "Great Unwind."

The Washington Post discusses a school of thought called "Modern Monetary Theory." Its basic premise is that governments can never run out of money because they can print it. Moreover, governments should use that ability to increase spending.

Gauti Eggertsson notes that policymakers in 1937 confused a rise in the relative prices of commodities for fundamental inflation. The result was bad policy decisions. He wonders if modern policymakers will make the same mistake.

Christina Romer argues that when inflation is low and the unemployment rate is high, there is little danger of inflation. She says that the Fed could engage in more aggressive quantitative easing, but seems to be overly worried about inflation expectations.

Allan Meltzer is worried that the Fed’s easy money policy will lead to inflation. He is also worried that the Fed has lost its independence. Paul Krugman is worried about falling wages and the possibility of deflation.

Robert Murphy responds to Mankiw’s argument that we need negative interest rates. He points out that Mankiw’s argument for future inflation is logically equivalent to an instantaneous collapse of prices. Mankiw points out that if prices are sticky, that can’t happen.